Federal gas tax holiday aims to ease prices at the pump, but how much will drivers save?
- President Biden is calling on Congress to suspend the federal gas tax through the end of September.
- It’s not clear how much of the 18.4 cents in tax savings will be passed along to consumers.
- One report that looked at state gas holidays found up to 72% of savings were passed on to consumers.
President Joe Biden is calling on Congress to suspend the federal gas tax through the end of September “to give Americans a little extra breathing room” as they face soaring gas prices at the pump. But just how much will U.S. drivers see in savings?
The federal gas tax is imposed on refiners like Exxon Mobile and Chevron, which means any savings from a tax holiday would trickle down to consumers instead of going into effect directly at the pump. The tax is 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel.